Loans to be provided through KGF under the "Tourism Support Package"...
Loans to be provided through KGF under the "Tourism Support Package".
According to a public announcement made on the website of Kredi Garanti Fonu A.Ş., it has been reported that, under the Tourism Support Package, 50 billion TL in loans will be provided by banks* authorised with Treasury-backed guarantees by the Republic of Türkiye Ministry of Treasury and Finance.
Through these loans, the aim is to cover the fixed expenses tied to contracts or invoices and the cash needs of enterprises operating in the tourism sector and their suppliers, primarily their salary and rent payments, and thereby to reduce the negative impact of the pandemic on their cash flows and to protect their production and employment capacities.
The implementation and interest rates applicable to the loans will be announced subsequently by the Banks Association of Türkiye.
The loan term will be a total of 36 months, including a grace period of a maximum of 12 months, provided that it does not exceed 01.11.2021.
The guarantee ceiling per beneficiary will be 32 million TL and the loan ceiling will be 40 million TL. The loan and guarantee limits have been set according to turnover ranges as follows:
Turnover Guarantee Ceiling (TL) Loan Ceiling (TL)
0-3 million TL 200.000 250.000
3-10 million TL 800.000 1.000.000
10-25 million TL 2.400.000 3.000.000
25-50 million TL 4.000.000 5.000.000
50-125 million TL 8.000.000 10.000.000
Over 125 million TL 16.000.000 20.000.000
Accommodation 32.000.000 40.000.000
The guarantee rate has been set at 80%.
Principles of Use
The first stage is the grace period until 01.11.2021. This period is also the period during which the limits to be allocated to beneficiaries by the Lenders under the Programme will be disbursed through the loan products specified below. After this date, no disbursements will be made even if the limit is available.
The second stage is the repayment period. The risk balance arising after the disbursements (and repayments, if any) made until 01.11.2021 will be tied to a 24-month repayment plan as of this date.
A loan amount corresponding to a maximum of 10% of the guarantee amount allocated to the beneficiary may be provided in cash for use in operating expenses. For disbursements above the 10% portion to be released for the company's use, transfers to third parties are required, and where the expenses to be financed exceed 100.000 TL in a single transaction, they must be documented with a contract, invoice or similar document.
Application Conditions
Beneficiaries are required to be one of the real or legal person enterprises established in accordance with the laws of the Republic of Türkiye and operating domestically or in the Free Zones in Türkiye.
It is required that, at the time of the loan application, there be no bankruptcy decision, dissolution, bankruptcy postponement decision, bankruptcy postponement injunction decision or composition (concordato) decision concerning the beneficiary, or concerning the companies in which the beneficiary and/or its partners hold, separately or jointly, a 25% or greater share. If this condition cannot be ascertained from the Bank's records, it shall be completed with a written declaration obtained from the beneficiary.
That, according to the beneficiary's application date to the Bank, in the latest Credit Limit, Credit Risk and Receivables to be Liquidated Report obtained from the Risk Centre of the Banks Association of Türkiye, the beneficiary has not been classified as a non-performing receivable under the "Regulation on the Procedures and Principles Regarding the Determination of the Qualifications of Loans and Other Receivables by Banks and the Provisions to be Set Aside for Them", and that its receivables are not of the nature tracked under the "Receivables to be Liquidated and Receivables of a Loss Nature" account pursuant to the provisions of the Regulation on the Accounting Practices and Financial Statements of Financial Leasing, Factoring and Financing Companies published in the Official Gazette dated 24/12/2013 and numbered 28861.
Fees and Commission
In return for the guarantees it provides, KGF collects a commission from beneficiaries through banks, on a one-off and upfront basis, at a rate of 0.5% of the guarantee amount for each guarantee disbursement. In the case of restructuring, a commission is collected upfront from beneficiaries through banks at a rate of 0.5% over the guarantee balance.
In return for the loan it provides, the Bank may collect a commission from beneficiaries of only up to a maximum of 0.5% of the loan amount for each loan disbursement.
For loans to be disbursed under the Treasury-backed KGF guarantee, the Bank may not demand any cost, fee or commission under any name other than the expenses to be paid for transactions to be carried out by third parties (appraisal, insurance, etc.) and those specified under this heading.
Loan Products that may be Disbursed
Cash Loan:
Loans to be disbursed on an instalment or revolving basis
Overdraft Account closed to cash withdrawal
Murabaha products
Non-cash Loan:
Corporate Credit Card
Direct Debit System
Supply Chain Financing
Letter of Guarantee for Goods Purchase
Guaranteed Cheque
*Authorised Banks: Akbank, Albaraka Türk Katılım Bankası, Denizbank, Garanti BBVA, Halkbank, İş Bankası, Kuveyt Türk Katılım Bankası, QNB Finansbank, TEB, Türkiye Finans Katılım Bankası, Vakıfbank, Vakıf Katılım Bankası, Yapı Kredi, Ziraat Bankası, Ziraat Katılım Bankası
Details on the matter are available on the website of Kredi Garanti Fonu at www.kgf.com.tr.
Given its importance, we bring the matter to your attention.
ATTACHMENT:
The announcement dated 20.08.2021 from the website of Kredi Garanti Fonu A.Ş.
https://www.kgf.com.tr/index.php/tr/urunlerimiz/hazine-destekli-kefaletler/turizm-destek-paketi